Toyota output likely to exceed forecast

Tokyo, July 22, 2011

Toyota Motor's global output is likely to rise to about 7.7 million units for the financial year to next March, up 4 percent from the automaker's earlier forecast, helped by a recovery in its parts supply chain, the Nikkei business daily reported.

Toyota and rivals have been forced to slash output after the March 11 earthquake and tsunami in northeastern Japan disrupted parts supply chains, including production at chipmaker Renesas Electronics , a key supplier of microprocessors to the auto industry.

In June, Toyota said it expected its global production to reach 7.39 million units in the 2011/12 financial year, a slight gain from the previous year.

But the company's supply chains have mended more quickly than initially expected and Toyota's production returned to nearly normal levels in late June, the Nikkei said.

It added, however, that the latest output outlook was still considerably below the 8.68 million units manufactured in the financial year to March 2008.